The 23-year-old has proven a major success since arriving from Wigan Athletic last September for an initial £13million.

The Blues have been keen to reward the midfielder for his progress, but talks have been on hold until the club completed their summer transfer business.

And with deadline day having now passed, discussions are set to move on with the Republic of Ireland international.

James McCarthy in action against Celta Vigo

Tim Howard, Seamus Coleman, Ross Barkley and John Stones have all penned new deals in recent months with boss Roberto Martinez – who himself signed a new deal in June – seeking to maintain a long-term core to his squad.

Meanwhile, both Bryan Oviedo and Arouna Kone have stepped up their rehabilitation from injury by training with the first team.

Martinez has used the international break to edge the long-term absentees nearer a return to action.

Kone hasn’t figured for the Blues in almost 11 months following a serious knee injury, while Oviedo suffered a horrific broken leg sustained during the FA Cup win at Stevenage in January that ruled him out of Costa Rica’s World Cup campaign.

“It has been great for Bryan Oviedo and Arouna Kone to play a big part in the first-team sessions this week,” said Martinez.

“They have given us some really good signs. Every time they train, they look a little bit closer to full fitness.

“It will be fantastic to get Bryan and Arouna fully fit with the first-team group real soon.”

Martinez is determined not to rush the duo’s return, with Oviedo and Kone likely to be back in first-team contention next month.

“It is too early for them to be involved (in September),” said the Blues boss. “You are talking about a big block of games, seven games in three weeks.

“We would feel confident if we can replicate the work we are doing in the next international break, and then we’d be confident they will be available for the next block of games.”